FIFTH COMMITTEE IS TOLD UN HAS ACHIEVED 773 OF 800 VACANCIES NEEDED TO KEEP 1996-1997 BUDGET WITHIN $2.61 BILLION LIMIT

15 May 1996

Press Release
GA/AB/3076

FIFTH COMMITTEE IS TOLD UN HAS ACHIEVED 773 OF 800 VACANCIES NEEDED TO KEEP 1996-1997 BUDGET WITHIN $2.61 BILLION LIMIT

19960515 Under-Secretary-General also Reports Efficiencies Will Be Institutionalized in Next Biennial Budget

The United Nations has achieved 773 of the 800 vacancies needed to keep the 1996-1997 budget within its $2.61 billion limit, the Fifth Committee (Administrative and Budgetary) was told this afternoon by Under-Secretary- General for Administration and Management Joseph E. Connor.

Addressing the Committee as it took up the Secretary-General's interim report on how he would slash $154 million from the budget, Mr. Connor also said that more than 350 issues had been identified for efficiencies. Efficiency measures would not be a one-time exercise and the next biennial budget would institutionalize them. The Secretary-General would submit a more detailed report on savings measures in September.

Pending that, the representative of Japan said, Member States should refrain from micro-managing the United Nations as that would delay the implementation of savings measures and undermine the drive for further economies. The current report's lack of details had prevented Member States from reviewing work programmes and the impact of the savings on individual activities.

Uganda's representative said the United Nations could not survive if it were ruled by the legislature of one of its Members, however powerful that State might be. The Organization could not be judged solely by efficiency in money terms. Attempts to manage it on the models of some of its members would render the Organization into a body that serves the interest of a few and suppresses the voices of the majority. Budget decisions strenuously negotiated and agreed to by consensus should not be unilaterally repudiated or distorted with threats of dire consequences.

The representative of Costa Rica, speaking for the Group of 77 developing countries and China, said that the Secretary-General's proposals for savings should be seen as no more than that until they were approved by the General Assembly. On the vacancy rate to be achieved, he asked why the

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Secretariat had raised the 6.4 per cent level set by the Assembly to 9 per cent for Professionals, for instance.

A 10 per cent cut of the $980-million budget of the Department of Administration and Management would provide two thirds of the mandated savings, said the representative of Canada, also speaking for Australia and New Zealand. The cut should include executive offices and administrative sections of other departments.

Statements on the budget cuts were also made by the representatives of Mexico and the United States.

Earlier, the Committee elected Evgueni Deineko (Russian Federation) by acclamation to the Committee on Contributions until the end of the year. He will fill out the term of office of his compatriot, Yuri Chulkov, who is resigning.

On the question of human resources management, several speakers said that the reform of the internal justice system should be deferred until it was considered by the Sixth Committee (Legal).

Statements on human resources were made by the representatives of India, United States, Portugal, Brazil, Ecuador, Egypt, Uruguay, United Kingdom, Germany, Cuba, Tunisia, Japan and Canada.

The Secretary-General's report on the budget cuts was introduced by Mr. Connor, and that on staff representational activities, by the Assistant Secretary-General for Human Resources Management, Denis Halliday. The Director of the Translation and Editorial Division, Regis Duval, introduced a report on the use of retirees.

C.S.M. MSELLE, Chairman of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), introduced his Committee's report on the proposed savings.

The Committee will meet again at 3 p.m. tomorrow, 16 May, to continue discussing the report on savings.

Committee Work Programmes

The Fifth Committee (Administrative and Budgetary) met this afternoon to recommend an appointment to a subsidiary body and to take up aspects of the 1996-1997 budget and human resources management. Under the budget it would consider the Secretary-General's proposals on how to save $154 million from it. Under-Secretary-General for Administration and Management Joseph E. Connor is expected to formally present the Secretary-General's proposals. On human resources management, it would consider the cost of staff representational activities, protections and privileges of United Nations staff and personnel and reforms of the internal justice system.

Appointment to Subsidiary Bodies

Notes by the Secretary-General (documents A/50/952 and A/C.5/50/7/Add.1), state that a member of the Committee on Contributions, Yuri Chulkov (Russian Federation), would resign from that body. The Assembly should appoint someone to fill the unexpired portion of that member's term of office through 1996. The Russian Federation has nominated Evgueni Deineko.

1996-1997 Budget

The interim report of the Secretary-General on measures to save $154 million from the 1996-1997 budget (document A/C.5/50/57) states that an overall cut of some $140 million of the $154 million mandated by the General Assembly seems feasible now. The cuts are couched in broad and preliminary terms and would affect staffing and work programmes and services. The amount could change as the budget's implementation proceeds, as managers respond to changing circumstances and as the results of ongoing reviews become known. At the end of the process, the level of mandated cuts seems achievable but with difficulty. Any new mandate adopted in the biennium would need new funding or would not be implementable without a commensurate cut elsewhere.

In reviewing the measures needed to achieve the $154 million cuts and cap spending at $2.61 billion, the Secretary-General recalls that he had proposed $98 million in cuts when he presented the 1996-1997 budget last year. The vacating of a significant number of posts is required at the beginning of 1996 to attain the 6.4 per cent vacancy rate set by the Assembly for General Service posts. Otherwise, unbudgeted spending of up to $50 million could arise. It is clear that the mandated cuts could not be achieved while implementing the programme of work initially planned or without significantly cutting staff costs.

The Secretary-General anticipates that average biennial vacancy rates of 9.0 per cent for Professional and 7.0 per cent for General Service posts could be realized. They would be achieved through attrition, strict enforcement of

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retirement age, freeze in recruitment, early separation, lateral staff redeployment and lay-offs. Required lay-offs will be achieved through a mechanism that will ensure that affected staff are considered for available vacancies. Early separation for 1996 has been offered worldwide, with the expectation that voluntary buy-outs will significantly help achieve the reduction target. There is a role for Member States and host countries in helping terminated staff resolve visa difficulties, find other jobs and possibly to resettle. "The human dimension of this process deserves the most serious concern and attention", he writes.

The report contains a section-by-section review of the impact of budgetary reductions based on initial efficiency reviews by all Departments. Those sections achieving the highest savings include the Department of Administration and Management ($43.5-$48 million); regular programme of technical cooperation ($7.4 million); Department of Public Information (DPI) ($7.2-$8.0 million); United Nations Conference on Trade and Development (UNCTAD) ($6.6-$7.3 million); peace-keeping operations and special missions ($5.8-$6.4 million); Economic Commission for Latin America and the Caribbean (ECLAC) ($4.8-$5.4 million); and Economic Commission for Africa (ECA) ($4.3- 4.7 million).

The report of the Advisory Committee on Administrative and Budgetary Questions (ACABQ), (document A/50/7/Add.16) states that cuts of the required magnitude cannot be achieved without reducing services and delaying and postponing programmes. Services and timeliness of delivery will also deteriorate. The most important fact to be considered is the difficulty in fully implementing Assembly resolution 50/214 as envisaged. It is also not clear that the projected $140 million in savings forecast by the Secretary- General can actually be achieved. The ACABQ states that a review of programmes must begin, so as to allow priority activities to be carried out and to avoid a general collapse in the quality of most of what the United Nations does. The relevant intergovernmental bodies should review the programme of work for 1996 to 1997 in order to guide the Secretary-General on what to include in his next report on the matter. He had stated that the current report was interim, with a more detailed one to follow at the next Assembly session.

The ACABQ recalls that $120 million in additional expenditures might arise in relation to peace and security. Experience has shown that additional requirements for the effects of currency fluctuation and inflation can have a major impact on the budget. Those matters will affect not only the current budget but also the budget for 1998-1999 and the future.

Commenting on the Secretary-General's report, the ACABQ suggests that the efficiency measures proposed should be applied uniformly throughout the Secretariat, whenever feasible. It is not possible to determine precisely

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which mandated work would be affected, as the report does not identify fully and clearly the projects or programmes slated for streamlining, postponement or cancellation. The report's current presentation does not allow the Assembly to determine whether the proposed savings will not affect the full implementation of mandated work. To enable it to do so, the Secretary-General should submit his next report in the normal budgetary format.

The ACABQ notes that, of the Secretary-General's proposed $140 million cut, $71.5 million would come from staff costs, $19.3 million from staff assessment and $49.2 million from non-staff costs. It recommends that, in proposing vacancies, the Secretary-General should keep in mind a balance of post grades and levels.

The ACABQ was informed that of the 10,021 posts authorized by the Assembly (3,961 Professional and 6,060 General Service) 834 posts (331 Professional and 503 General Service) are expected to be vacant by the end of 1997. It points out that, contrary to the General Service vacancy rate, Professional vacancies are part of the Secretariat's response to the need to save $104 million and had not been specifically sought by the Assembly. The Secretary-General should have explained better the need to cut Professional staff in relation to other possible non-staff savings, since the loss of such staff could hurt mandated programmes, the ACABQ states. The question of recruitment to newly established posts has not been clarified either. The ACABQ says it was informed that, of the 834 projected vacancies, 673 had been achieved by 31 March (440 Professional and 233 General Service posts). It seemed that the vacancies could be achieved through attrition, enforcement of the retirement age and a hiring freeze. According to an annex in the ACABQ report, the largest cuts proposed by the Secretary-General would come from the Department of Administration and Management, with 316 out of a total of 3,937; Department of Public Information, 68 from 822; UNCTAD/ITC, 58 from 448, ESCAP, 49 out of 515; and ECLAC, 48 from 532.

In the current financial situation, the implementation of early separation of staff or "buy-outs" seems to be of help in making the savings sought, the report states. However, it does not help improve the quality of staff in the United Nations. About $25.5 million was set aside in the 1994- 1995 common staff costs to pay for "buy-outs" and involuntary separation of staff. Of that, $4.5 million was paid in 1995 and the balance in 1996. As for the 1996-1997 biennium, the ACABQ was informed that an initial $15 million of common staff cost resources would be allocated to provide for indemnity payments for 1996 early separations. Given the views of the ACABQ on the buy- outs, the Assembly should consider whether such an expenditure will be necessary and, if not, whether the Secretary-General could be asked to consider savings under common staff costs as part of the $104 million in cuts. Since the Secretary-General intends to keep 834 posts unfunded in 1996 and

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1997, the Assembly should decide on their future when it considers his report at the next session.

Informed that staff would be redeployed between budget sections to mitigate the impact of cost reductions in some areas, the ACABQ states that those who have not undergone regular recruitment procedures should not be considered for redeployment.

A letter dated 9 May from the Chairman of the Committee on Conferences to the Chairman of the Fifth Committee, on the Secretary-General's proposed savings (document A/C.5/50/66) states that programme managers had been asked to save some $26.8 million and attain a 6.5 per cent vacancy rate. To attain those targets, it was necessary to cut temporary assistance, increase the use of self-revision and postpone the purchase of computerized systems for use in the Translation Services as well as other technological innovations. Resources would be available only for meetings approved in the calendar of conferences. Additional meetings could not be accommodated without more resources. The concurrence of the body concerned must be sought before action was taken to change entitlements to meetings.

In a report in response to the Assembly's requests on how he would absorb the costs of new mandates for United Nations special missions within the 1996-1997 budget (document A/C.5/50/67), the Secretary-General reiterates that the mandates could be carried out within the budget if the Assembly chose programmes that should be terminated or eliminated. Member States might reflect on whether the Secretary-General could deliver all mandated programmes and keep expenditure levels "within existing resources".

The Secretary-General states that the ability to absorb an additional $120 million for new mandates in 1996-1997 should be considered in the perspective of the initial $98 million he had included in the budget and the $154 million mandated by the Assembly. Efficiencies being identified were unlikely to yield savings exceeding the $154 million. It must be noted that efficiencies and cuts agreed upon by Member States might not have the same effect as immediate cuts in the budget. The feasibility of turning efficiencies or cuts by Member States of programmes into immediate savings is limited.

In addition to the mandates for the International Civilian Mission to Haiti (MICIVIH), the United Nations Human Rights Verification Mission in Guatemala (MINUGUA), the United Nations Verification Office in El Salvador (ONUV), and the Commission of Inquiry for Rwanda, other missions could be mandated, including those to Afghanistan and Burundi and for the Central American peace process. Those missions could cost a total of $120 million ($51 million in 1996 and $69 million in 1997).

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Human Resources Management

On human resources management, the Committee had before it six reports of the Secretary-General -- three on reform of the Secretariat's internal justice system, and one each on the composition of the Secretariat, list of Secretarial staff and amendments to the Staff Rules. Also before the Committee were a note submitted by the Secretary-General on behalf of the members of the Administrative Committee on Coordination (ACC) concerning privileges and immunities of United Nations officials; a note by the Secretary-General transmitting the comments of the Administrative Tribunal and the Staff Union of the Secretariat on the internal justice system; and the ACABQ report on the system. The Committee will also consider four other reports by the Secretary-General: two on the costs of staff representation activities; another on reasonable time for such activities; and an interim report on the use of retirees as temporary conference servicing staff.

The annual report of the Secretary-General on the composition of the Secretariat (document A/50/540) is intended to facilitate an assessment of the distribution of the staff by nationality, sex, grade and type of appointment. The total number of staff of the Organization as of 30 June 1995 was 34,481, of whom 14,380 were assigned to the Secretariat of the United Nations and 20,101 to the secretariats of subsidiary organs. A total of 10,055 posts are financed from the regular budget and 24,426 posts financed from extrabudgetary sources.

The report states that a number of posts in the Secretariat are subject to geographical distribution -- a system of desirable ranges used as a guideline for estimating the comparative representation of the nationals of each Member State. The system is based on three factors: membership, contribution and population. The number of staff subject to geographical distribution is currently 2,515. Among staff excluded from the principle of geographical distribution are those occupying posts with special language requirements, in the Field Service and locally recruited staff related to General Service categories.

The ranges are compared with the number of nationals in posts subject to geographical distribution to determine whether Member States are unrepresented, underrepresented, within range and overrepresented. As of 30 June 1995, there were 25 unrepresented Member States, as compared with 28 on 30 June 1994. National examinations have been or would be held to reduce the number of unrepresented States and underrepresented States.

The report states that efforts continue to secure an increase in the participation of women, particularly at the senior policy level and in decision-making posts to an overall participation rate of 35 per cent by 1995, as called for by the Assembly. As of 30 June 1995, the number of women in

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geographical posts was 857 or 34.1 per cent -- increased from 29.2 per cent as at 30 June 1991. The percentage of women in language posts has grown from 30.5 per cent to 35.3 per cent over the same period.

Appointments to posts subject to geographical distribution from 1 July 1994 and 30 June 1995 included those of 54 candidates from 20 countries who were successful in national competitive examinations for posts at the Associate Officer (P-2) and Second Officer (P-3) levels. During that period, 60 women were appointed to posts subject to geographical distribution representing 44.4 per cent of the 135 appointments made. Women from developing countries accounted for 25 appointments or 41.7 per cent of the 60 appointments of women made during the reporting period.

The list of staff in the Secretariat (document A/C.5/50/L.2) shows by office, department and organizational element, the name, functional title, nationality and grade of all staff members holding an appointment of one year or more as at 30 June 1995.

The Secretary-General's note on respect for the privileges and immunities of officials of the United Nations and the specialized agencies and related organizations (document A/C.5/50/3) states that during the period 1 July 1994 to 30 June 1995 and through the preparation of the report, 14 civilian staff members belonging to different organizations lost their lives. That figure excludes military personnel in peace-keeping operations. There have also been numerous instances of harassment, kidnapping, vehicle hijackings and attacks on United Nations personnel.

Over the past two years, the report states, there had been a decrease in the number of staff members arrested or detained. However, that trend has now been reversed by the aggravated situation existing in Rwanda, where numerous locally recruited staff members have been detained. A number of initiatives have been taken both at the local level by the Secretary-General's Special Representative and by the United Nations Resident Coordinator, as well as by other senior officials visiting Rwanda, to bring to the attention of Rwandan authorities the unresolved questions relating to those cases. In addition, a legal representative has been sent to Kigali to discuss the cases with the Rwandan authorities.

Regarding the existing restrictions imposed by the United States authorities on private travel of United Nations staff members and their dependants who are nationals of particular countries, the Secretary-General maintains the position that such restrictions applied solely on the basis of nationality are discriminatory. Annexed to the report is a consolidated list of staff members under arrest and detention or missing.

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Two of the Secretary-General's reports on the reform of the internal justice system were prepared for the Assembly's forty-ninth session (documents A/C.5/49/13 of November 1994, and A/C.5/49/60/Add.1 and Add.2/Corr.1 of March and June 1995). The recommendations and their financial implications, contained in the reports, were subsequently amended in the Secretary-General's consolidated report of September 1995 (document A/C.5/50/2), to take into account suggestions made by the United Nations Administrative Tribunal on the legal aspects of the reform and to incorporate new provisions agreed on after consultation with the staff (document A/C.5/50/2/Add.1).

The Secretary-General states that the proposed reform is an integral part of the vast effort now under way to rationalize the Organization's management and to make it more responsive to the needs of Member States, programme management and staff members. The proposed reform intended to enhance earlier reconciliation and resolution of disputes before they develop into formal litigation; to professionalize the membership of appeals and disciplinary boards and to provide them with the means to dispose of cases in a more expeditious yet fair manner; and to provide a cost-effective and simple justice system, with the elimination of hidden costs.

In addition to the training of managers in communication skills and dispute resolution, the Secretary-General proposes to set up ombudsman panels at all major duty stations, under the direction of a coordinator, and to deal with disagreements, grievances and discrimination issues raised informally by staff members. Should the Assembly approve the panels, the coordinator would be appointed in early 1996 and would organize and train the members of all ombudsman panels. The coordinator would be appointed at the Principal Officer level (D-1) and an amount of $41,300 would be required in 1996-1997 for his travel costs for the setting up of the panels.

The Secretary-General also proposes the appointment of two administrative review officers at the Senior Officer (P-5) and First Officer (P-4) levels, operating independently within the Office of the Under- Secretary-General for Administration and Management. Those officers will review administrative decisions at an early stage of the appeals process and provide advice on decisions to be taken on recommendations received from advisory bodies in appeals and disciplinary cases. In that connection, Staff Rule 111.2 (a) would have to be amended to provide a two-month review period for cases in New York and a three-month review period for all other cases.

To professionalize the justice system, the Secretary-General proposes the appointment of a legal officer to the panel of Counsel which represents staff members, the report states. In addition, the Secretary-General recommends the replacement of the voluntary Joint Appeals Board by an arbitration board of independent professionals, to gradually introduce

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optional binding arbitration. The Assembly would have to approve the change and authorize revisions in the staff regulation 111.2.

The arbitration board's 10-article draft statute, annexed to the report, allows for two secretariats: in New York and Geneva, each headed by a full- time chairperson and alternate chairperson, respectively. The board will comprise a total of 10 externally recruited arbitrators, no two of whom may be from the same Member State. It will be serviced on a part-time basis by two members and two alternate members, as needed. All appointments will be made by the Secretary-General after consultation with the staff. The Board is expected to hold 10 one-week sessions in New York and six one-week sessions in Geneva. The time allocation is proposed on the basis of an annual workload of more than 100 cases. In 1994, 124 cases were filed.

The Secretary-General also proposes a disciplinary board to replace the present Joint Disciplinary Committee. The 10-article draft statute for the disciplinary board, also annexed to the report, provides for that body to be set up in New York and in Geneva, under the chairmanship of the chairperson and alternate chairperson of the arbitration board. The other members of the Board will be staff members. Draft changes are required to the Staff Rules 110.4 to 110.7, to replace the relevant provisions on the structure and procedure of the disciplinary body.

Overall, the additional requirements of the Secretary-General's proposals for 1996 and 1997 amount to $1.5 million, $523,700 more than the proposed budget. Of the total revised estimates, $587,900 is for five new posts; $519,700 is for compensation for the chairman and the alternative chairman of the arbitration board and $106,000 for the other Board members; and $325,900 for travel and subsistence.

The increase is attributable to the fact that some of the costs included in the proposed programme budget were inadvertently estimated for one year instead of two and that, initially, it was envisaged that the alternate chairperson would serve on a part-time basis rather than on a full-time basis. The increase would be sought from the contingency fund.

In his note (document A/C.5/50/2/Add.1) transmitting the comments of the United Nations Administrative Tribunal and the Staff Union, the Secretary- General says he regrets that the Secretariat Staff Union does not support the proposed reform of the internal justice system in its present form. He emphasizes that his report is fully consistent with all the agreements reached with the staff throughout the consultation process on the reform -- agreements he has endorsed -- such as the participation of the staff in the selection process for the arbitrators and the coordinator of the ombudsman panels. Over the past four years, he has received from the Joint Appeals Board advice of uneven quality, which was not readily acceptable and required in each case an

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in-depth review to determine whether each recommendation was supported by evidence and conformed to the relevant legal principles, rules and policies.

In its comments contained in an annex to the note, the Administrative Tribunal states that the Secretary-General's consolidated report has the effect of condemning severely the performance of the Appeals Board. It would appear that a number of the matters related to the operation of the Board might be solved through the adoption of appropriate rules concerning potential conflicts or bias, and through reform of the system of selection of Board members.

According to the Tribunal, the statistics cited in the Secretary- General's report create the impression that the Board has been performing very poorly, and this appears to be one of the principal reasons put forward for replacing it with an arbitration board. Without an in-depth analysis, it would be very difficult to arrive at a valid judgement concerning the quality of the Board's work.

On the financial aspects of the proposed reforms, the Administrative Tribunal states that it is doubtful whether the part-time members of the New York arbitration board would be able to deal with an estimated annual case- load of 90 in two five-week sessions. Time requirements indicate that the arbitration board is likely to be significantly more expensive than has been estimated by the Secretary-General.

In its comments, contained in another annex to the Secretary-General's note, the Staff Union states that the Secretary-General's report was not provided to the staff before publication, "even though the document is riddled with references to its support". The staff's research indicates that the majority of recommendations rejected by the Secretary-General are upheld by the Tribunal. The Union stressed that over the past two years, the Secretary- General accepted the recommendations of the Joint Appeals Board in 99.5 per cent of the cases when the Board supported the decision of the Administration. His confidence in the Board dropped dramatically in cases where the Board supported the appellant. It adds that the crisis in the justice system appears to be the inability of management to be accountable for incorrect or improper decisions.

The Staff Union points out that as long as the proposed arbitrators are recruited and paid by the United Nations Secretariat, every precaution should be taken to ensure that they are truly independent. For that reason, the selection process must be a joint one. A detailed selection process by a joint staff-management panel for the ombudsman coordinator, chairperson, alternate chairperson and members of the arbitration board, which was agreed to by staff and management, has been suppressed in the document. The Union also expresses concern about the proposal to add only one person to the office

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of the coordinator of the panel of counsel. The Staff Union is committed to reforms. Deletion of fundamental components of due process, such as adequate representation and agreement on the arbitrators, alters fundamentally the proposal. The Staff Union concludes that if the Secretary-General's consolidated report remains in its present form, it does not have the support of the staff.

In its related report, the ACABQ (document A/50/7/Add.8) recommends acceptance of the proposed two posts of administrative review officers. The Committee further recommends that the office be accorded operational independence to ensure objectivity and efficiency. Regarding the remuneration of the arbitration board, the Advisory Committee points out that the remuneration packages proposed by the Secretary-General are unlike any existing pay arrangements and the rationale is unclear. It is not clear about the projected staff requirements for the board in New York and Geneva, since no mention is made of secretariat and other services in the Secretary- General's financial summary.

There are still issues to be addressed with regard to the proposal for an arbitration board, the report states, adding that more work should be done before its creation is further considered by the Assembly. The Advisory Committee also recommends that the establishment of a disciplinary board should be reconsidered when the establishment of an arbitration board is considered. The Committee agrees that resources should be provided for the training of members of the panel of counsel. The financial implications of the ACABQ recommendations would amount to $629,200 in the proposal for 1996- 1997 -- $587,900 for new posts and $41,300 for the travel of the coordinator.

The Secretary-General's report on revised costs of staff representation activities during the biennium 1990-1991 (document A/C.5/49/63) is a corrigendum of a 1992 report which was requested by the Assembly. It corrects the figures on the full-time release of the New York Staff Committee's President and two Vice-Presidents as well as those reported for Geneva and Santiago. The release time is based on the size of the staff represented. The President or Chairman of the Executive Committee of each staff council may be released, either full-time, if 1,000 or more staff is represented, or half- time, if less than 1,000 staff is represented. Another factor to be taken account is the rapid growth in the number of staff serving in field missions in recent years, including staff assigned to three peace-keeping operations.

The total estimated costs for 1991-1992 for staff union activities for nine major duty stations was $1.7 million. The costs cover staff, general operating expenses, supplies and equipment, documentation and communications. The breakdown is as follows: New York -- $0.6 million; Geneva -- $0.6 million, Santiago -- $0.1 million; Vienna -- $0.1 million; Nairobi -- $0.04 million, Bangkok -- $0.07 million; Addis Ababa -- $0.06 million; Amman --

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$0.01 million; and Jerusalem -- $0.01 million. Staff costs for New York for 1992 include the President (P-5), First Vice-President (P-3), another vice- president as well as two general service support staff on full-time release. In Geneva, the staff costs cover the President (P-5) during 1990-1991 and two full-time General Service staff members. The estimates also take account of the service to the Coordinating Committee for International Staff Unions and Associations (CCISUA) by the Presidents of the Geneva and New York Staff committees. The respective costs are $55,154 for 1990 and $40,455 for 1991.

In another report on costs of staff representation activities in 1992, 1993 and 1994 (document A/C.5/49/64), the Secretary-General states that funding for staff-management activities include both direct costs charged against the regular budget and indirect costs in terms of the release of staff from their assigned duties. Direct costs comprise travel and subsistence related to the attendance at Staff Management Coordination Committee SMCC meetings, full-time support staff and budgetary expenditures related to supplies and equipment and communications.

The total estimated staff costs for the period under review, as shown in the annexes to the report, are: $1.14 million (1992), $1.05 million (1993) and $1.02 million (1994). Estimated costs for the two largest duty stations in 1994 were on par at a cost of $0.35 million. Travel and subsistence for the annual SMCC meetings were: $87,474 (1992), $56,767 (1993), and $67,857 (1994). The 1994 figure includes $7,194 for the first ever two inter- sessional meetings.

The report states that staff representational activities are not explicitly budgeted but are absorbed under the regular budget through the provision of staff time, support staff and facilities. The level of expenditures has been determined by various factors, such as whether support staff have been provided, the personal grade of the President and whether he/she has been released full or half time and the personal grade of any other officers who may have been released. During the reporting period, the First and Second Vice-Presidents of the New York Staff Committee were also permitted full-time release in recognition of the vast increase in the volume and complexity of the issues handled by the Committee.

Much of staff representation activities includes participation in the 19-member SMCC which meets annually and the Joint Advisory Committee (JAC), the report states. Most duty stations have joint advisory bodies. The SMCC comprises nine staff and nine senior management representatives from major duty stations, up to four alternates and a President. The JAC established at Headquarters consists of the highest ranking officials of Administration and Management, Human Resources Management and of the Divisions of Staff Administration and Training, and Recruitment and Placement, and four of the

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highest ranking staff committee members. The costs for the JAC members represented are considered as indirect costs.

The Secretary-General has also prepared a report on reasonable time for staff representational activities (document A/C.5/50/64) in response to a Fifth Committee request for the definition of "reasonable time". In formulating the definitions, the SMCC sought to balance the increase in the complexity and number of issues dealt with in the context of staff-management consultations and the legitimate concerns of Member States and those of programme managers regarding the amount of time and the level of resources devoted to the process. Staff representatives consider the times to be the lowest possible release levels feasible, if staff are to be able to carry out their activities and participate fully in staff-management consultations.

In September 1995, the Secretary-General endorsed the SMCC recommendations. Reasonable time is applied in the following ways: Full-time release for the President or Chairman of the Executive Committee/Council representing around 1,000 staff, and 60 per cent release if the number of staff is less. In the latter case, additional time should be given to deal with non-recurrent issues. Outside of New York and Geneva, release is granted for the First Vice-President and, where applicable, for the Second Vice-President for three days per week (or 96 hours per month), if about 1,000 staff is represented, and 1.5 days per week (or 48 hours per month) if the number is less. The First and Second Vice-Presidents in New York and the Vice-Executive Secretary in Geneva are to be given full-time release. When the President or Chairman holds concurrently the position of President of the CCISUA, release of another officer should be given.

For other members of the Executive Committee, when the number of staff represented is in the range of 1,000, there should be 32 hours per month of release (except for New York where 44 hours per month should apply) and 16 hours per month when the number of staff is less. For Staff Council members, an average of 10 hours per month of release, except for New York where 15 hours per month should apply. In the case of field missions, an average of 5 hours per month should apply. It is understood that should additional time be required for special projects, the concurrence of the programme manager/supervisor should be sought.

The report also states that the SMCC management has recommended the introduction of term limits for staff representatives so as to avoid a long- term, repeated drain of programme delivery resources. Staff representatives state that the proposal should not be considered, and that it infringed upon the sovereign rights of staff representative bodies. Also considered by the SMCC was the issue of the termination of the full-time release of a Research Officer for CCISUA, the Secretary-General's approval of that release under

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specific conditions and the suspension of that measure in view of Member States expressed concerns.

In an interim report (document A/C.5/50/61), the Secretary-General requests the Assembly to extend to 31 December 1996 the derogation granted for the use of retirees as temporary conference servicing staff. By resolution 49/222B, the Assembly had decided that, pending consideration of a comprehensive policy on the matter, no former staff member receiving a pension benefit from the Organization's Pension Fund should receive from any United Nations funds more than $12,000 in total in any calendar year. However, during the fiftieth anniversary session a derogation from the decision was granted in order to maintain the maximum effectiveness of conference services.

The Secretary-General noted that the derogation lapses by mid-September and, unless the Assembly takes action to extend it through the fifty-first session, the enforcement of the $12,000 limit is likely to have a serious impact on the conference services for the session in terms of both cost and availability. Although the major impact would be felt in New York, there would also be an impact on conference services in Geneva and Vienna.

The report states that even if locally recruited retirees do not work prior to the session's opening, they would not be able to cover the entire three months and remain within the $12,000 limit. Therefore, they would have to be replaced by non-local recruits at some point during the session. If non-local recruits were considered, the $12,000 limit would also preclude non-local retirees from the three-month period. The servicing of the session would have to be divided between two shifts, thus doubling travel expenses and entailing additional daily subsistence allowance costs.

For interpretation services, on the basis of 1995 figures, it has been calculated that the replacement of local retirees by non-local freelance staff will increase the cost of services by more than $160,000 for the duration of the session, not counting travel expenses, which vary from one individual to another. For translation services, an estimated extra cost of some $14,000 in daily subsistence allowance and travel expenses will be incurred for each local staff replaced by non-local staff. For verbatim reporters, retirees are the main source of temporary assistance because of the unique situation of reporting in the six official languages. The alternative option of training non-United Nations staff is not practical, the report states.

Budget Cuts

JOSEPH E. CONNOR, Under-Secretary-General for Administration and Management, introduced the report on implementing the mandated savings of $154 million. An overall cut of $140 million, of the $154 million mandated by the General Assembly, had been identified, he said. It was anticipated that

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average biennial vacancy rates of 9.0 per cent for Professional and 7.0 per cent for General Service posts would be realized through attrition, strict enforcement of the retirement age, a freeze in recruitment, early separation, lateral staff redeployment and lay-offs. As of 31 March, some 673 posts had been vacated and an additional 100 since then. The efforts to achieve efficiency had been helped by the lessons learned from the United Kingdom and other countries that had committed staff and expertise to help the process. More than 350 issues had been identified for efficiencies and departmental leaders were coordinating reviews.

He gave examples of how the efficiencies would yield savings. For instance, ECLAC would reduce paper and mailing costs by 25-30 per cent and use desk-top publishing. The International Computing Centre estimated that savings of more than $1 million could be achieved by participating agencies through a shared Internet facility. The United Nations Office in El Salvador would cut about 13 per cent from travel by using discount and special fares. It would save about one quarter of the costs of supplies and other commodities by using streamlined procurement procedures and standing agreements with external suppliers. Longer-term efficiency reviews of cross-cutting issues were also being conducted with the assistance of Member States. The saving measures would not be a one-time exercise and the Secretary-General would submit a more detailed report in September. The next budget would institutionalize efficiencies and reflect a significant organizational shift.

C.S.M. MSELLE, Chairman of the ACABQ, introduced the report of his committee and narrated some of its conclusions and recommendations. He said that General Assembly resolution 41/213 of December 1986 on budgetary procedures should be applied as it had been adopted to ensure order and provide ways to deal with additional costs for mandates that might arise after budgets had been approved. It had been sought by Member States who had been unsatisfied with the process of budget making before then. The text had allowed for additional appropriations only after the Secretariat had shown that some costs could not be absorbed and after the Assembly had accepted that view. If some Member States felt that the resolution was no longer relevant or that it should be ignored, they should think seriously of an alternative course of action. But as a person who had taken part in developing resolution 41/213 and having knowledge of what had obtained before its adoption, he would not advise that it be changed. If the procedures were abandoned, not all Members would like the results that would follow.

JOSE M. GUTIERREZ (Costa Rica), also speaking for the Group of 77 and China, said the budget was still fully valid. The adoption of the budget was not a ceiling on expenditures. There were due processes by which additional funds could be appropriated for new mandates or to finance new activities. All the appropriate budgetary procedures should be fully respected. Changes in mandated programmes or activities were the prerogative of the General

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Assembly and the savings by the Secretary-General should not affect the full implementation of mandated activities. That should be understood in both the qualitative and quantitative sense. Implementation should be carried out in the real sense and programmes not watered down. Partial or reduced implementation should be avoided.

Whenever programmes were not fully carried out, the very mission of the Organization was attacked, he said. Changes in activities and programmes should be the prerogative of Member States and no attempt should be made to change them without consultations. The report of the Secretariat on measures to achieve savings should be more precise in order to ensure more fruitful consultations. The Secretary-General's report was not completely clear and the Group of 77 and China would like to recall that the Assembly had called for the role of the Joint Inspection Unit (JIU) to be strengthened. The information on post reductions was sometimes confused and inaccurate. On the question of vacancy rates, the 6.4 per cent level had been approved after intense consultations. Therefore, the Group was surprised at the increase of that rate by the Secretariat, despite the provisions of the relevant Assembly resolutions.

He said that the Member States should be given information on the savings achieved to date and how they would affect programmes. The proposals for savings were no more than proposals which Member States might discuss and approve.

MASAKI KONISHI (Japan) asked how the remaining $14 million of the $154 million savings would be achieved. The interim report of the Secretary- General had not provided information that would enable Member States to judge which savings measures he had the authority to take on his own and which of them must be approved by the Assembly or relevant intergovernmental organizations. The Secretary-General's report referred to a review of the frequency of meetings of policy-making bodies in connection with "efficiencies", but that matter should be determined by the intergovernmental organs themselves. Member States could not conduct a useful review of work programmes on the basis of the current report since it lacked detailed information on the impact of the savings measures on individual programmes. The Secretary-General should submit a more detailed report at the earliest opportunity to the fifty-first Assembly session. Pending the submission of that report, Member States should refrain from micro-managing the United Nations as that would delay the implementation of savings measures and undermine the drive to achieve further economies.

On the question of posts, he said that the vacancy rate set for Professional staff was higher than the 6.4 per cent determined by the Assembly, and that might hurt the delivery of mandated programmes, as noted by the ACABQ. Economies should be sought from non-staff expenditures. National

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competitive examinations should continue to be used to hire qualified staff. The Secretariat should provide a breakdown of the number of posts vacated by attrition, retirement, early separation and lay-offs. It should also provide the Assembly with more information and analysis on the cost and results of the buy-out programme. As for the additional requirements of $120 million that might arise, with some $102 million for activities related to peace and security, the question should be considered carefully and a consensus solution reached. He asked whether the Secretariat would seek further savings to absorb those additional costs. More information should be provided on the Efficiency Board to enhance the transparency of its work.

SAM HANSON (Canada), speaking also for Australia and New Zealand, welcomed the proposed budgetary savings and the full participation of programme managers in identifying possible reductions. Noting that the JIU had resisted that approach, he urged that body to comply with the Assembly's will and cooperate fully with the Secretary-General in the budgetary exercise. Approximately $140 million in savings had been identified out of the mandated $154 million. Commending that as excellent progress so early in the budgetary period, he said it strengthened the confidence that the full mandated amount would be achieved. It appeared that the impact on the work programme over the full biennium would be much less than had been feared.

He said that in Canada's experience, budgetary savings in the order of 10 per cent or more could be absorbed, at least in the first few years of an intensive programme of efficiency reviews, without undue impact on programme delivery. Referring to the fact that in a number of the budget's sections possible savings identified were less than 5 per cent, he focused his comments on Administration and Management. That section's 1996-1997 authorized expenditures were over $980 million. He said a 10 per cent reduction in that section alone would yield almost two thirds of the mandated savings. That should include executive offices and administrative sections of other departments.

There was also need to concentrate on reducing the ratio of General Service to Professional staff in some administrative subsections, he continued. In addition, the Secretary-General should formulate proposals to make the necessary programmatic proposals to achieve the desired level of savings. Although delegations could make proposals, the Secretary-General could do it in a neutral and objective way. He should not hesitate to do so. Member States had already asked for such proposals in the context of two missions. It was essential that a substantive dialogue take place on that issue between the Secretariat and the competent inter-governmental bodies.

NESTER ODAGO-JALOMAYO (Uganda) said it was a surprise that the $2.6 billion approved as the budget for 1996-1997 was a budgetary cap which must not be exceeded under any circumstances. That meant that additional costs for

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all currency and inflation effects, and a projected $120 million for peace and security, should be absorbed. That was never the Assembly's intention when it adopted the budget resolutions. Stressing that the Organization must streamline and save, he said it should be done in a planned manner, as was being done.

What was not acceptable, he continued, was the tendency to have decisions strenuously negotiated and accepted by consensus in the first place, but subsequently be unilaterally repudiated or distorted with threats of dire consequences if the Organization did not accept such repudiation. As an international organization of 185 Member States, "the United Nations cannot survive for long if it is to be ruled from the chambers of the legislative bodies of one of its Members, however powerful that Member State may be".

The Organization could not solve its problems by a management approach and the mechanical transplantation of models, techniques and institutional approaches that exactly corresponded to what national governments or transnational enterprises were doing. The Organization was not a business corporation and could not be judged solely by efficiency in money terms. "Attempts to manage on the models of some Member States will render the Organization into one which serves the interests of a few members while suppressing the voices of the majority."

He said he agreed with all the observations and recommendations of the ACABQ. The Secretary-General's proposals fell far short of what he expected. His proposals would have far-reaching effects on programme delivery. "The roof of the General Assembly is leaking. There are potholes right in front of the Secretariat. The quality of maintaining the premises has dramatically deteriorated and is continuing to get worse." The postponement of the programmes would lead to higher resource requirements in terms of additional costs, as in the area of repairs and maintenance.

The Secretary-General's proposals seemed to have ignored decisions of Member States in certain areas of the budget. He called for detailed information from the Secretariat to enable Member States to determine whether those proposals were compatible with the resolution which adopted the budget -- resolution 50/241. The Secretary-General should seek General Assembly approval before implementing proposals to realize savings including posts identified for transfers, suppression or buy-out. He also called for more information on the role and terms of the Efficiency Board. He reiterated the important role of programme formulating bodies in reviewing programme activities.

MARTHA PENA (Mexico) said that in the Secretariat's efforts to achieve savings, the mandated programmes should be respected and fully implemented. Cost reductions should be compatible with those goals. Noting that the JIU

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had not submitted proposals for cost reduction, she hoped that that body would cooperate with the Secretary-General in proposing savings before the fifty- first session. The Secretary-General should continue his efforts to achieve efficiency gains as well as the streamlining of activities. She called for clarification of the lateral redeployment programme and its implications for the vacancy rates for both levels of staff.

She questioned the savings made in a number of sections of the budget, such as: Africa, critical economic situation recovery and development (section 7B); construction and maintenance (section 31); and ECLAC (section 18), She queried the reasons for the higher level of savings for ECLAC. It was premature to propose reductions in section 10A -- United Nations Conference on Trade and Development (UNCTAD) -- in view of the programme changes just proposed in the recently concluded UNCTAD IX conference.

The human rights publication programme within section 21 of the budget should not be targeted for possible savings, she continued. Reductions in adminstration and management (section 26) should not target conference services beyond what was already proposed. The deterioration of those services was a cause for concern. She shared a number of the ACABQ's concerns, particularly that short-term savings could have the opposite effect in the long term. Increased local recruitment of staff would affect the opportunity of persons from other Member States to work in the Organization.

HERBERT D. GELBER (United States) said the Secretary-General had made an admirable effort in identifying reductions of about $140 million to be achieved in this biennium. The progress towards the total reduction of $154 million was significant. "It is imperative that the budget stay within the $2.6 billion level established for the biennium." Resources required to finance new and unfunded activities must be absorbed within the budget level. Much needed to be done to ensure that expenditures did not exceed the approved budget level. Further mandated efficiency savings were attainable. However, such savings were limited in scope and might not yield savings of the magnitude required to absorb the estimated additional requirements.

Attention must now be focused on mandates "which are claimed to underpin activities and programs", he said. Priorities would have to be defined and reordered. It must be a joint effort. He called on the Secretary-General to review the mandates and to make recommendations to Member States for action. Member States have the responsibility for making the hard choices among priorities. He was willing to work with other delegations in achieving the efficiencies required. The agenda of the future demanded its place in the Organization's work programme.

HISHAM ELZIMAITY (Egypt) expressed support for the statement made by Costa Rica. He said he was referring to the report without as much as "taking

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note" of it, because merely "taking note" might be interpreted differently from what he had intended. He asked for clarification of the thinking of the Secretariat on the report, for instance as to whether it felt that the Secretary-General could carry out the measures without the Assembly's approval.

He went on to ask whether all the vacated posts would be abolished after the 1996-1997 biennium. If so, why were there no proposals to do so now? he asked. He sought details on those who had left, along the lines of nationality and years of service. The best staff in the Organization should not be allowed to leave simply to save some money. The cost of the buy-out programme should be clarified. He also asked how many staff would be laid-off and the legal basis for that action. He asked what impact the current process would have on the next budget. Would the next budget be smaller than $2.6 billion? he asked. Details on other matters such as the Efficiency Board, the efficiency review and other issues were sought.

He said that his delegation was not in a position to renegotiate a budget that had been approved last December. He agreed with the Secretary- General that any new mandate would require new funding and he did not accept the concept of a budget cap. Any action on the budget should be taken only through compromise.

Human Resources Management

DENIS HALLIDAY, Assistant Secretary-General for Administration and Management, introduced the Secretary-General's reports on the staff representation activities. He said the arrangements reflected in the reports predated the adoption of resolutions 50/214 and 50/215, with their demands for savings. Therefore, the Secretariat was in a different financial and human resources position. It was aware of and appreciated Member States' concerns in that regard. In presenting the SMCC agreements, as endorsed by the Secretary-General, he reaffirmed the belief that constructive staff-management consultative relations could help the functioning of the global Secretariat and the implementation of change. That was important, as the United Nations was trying to adjust to unexpected budgetary restraints that affected staff employment, while trying to improve productivity and overall performance.

REGIS DUVAL, Director of the Translation and Editorial Division, introduced the report on the use of retirees and the annual limit of $12,000 as what they could be paid by the United Nations.

VIJAY GOKHALE (India), referring to the reform of the internal justice system, said serious questions had been raised by the Staff Union and the United Nations Administrative Tribunal. The issue required more time for consideration by the Member States, which might not be possible at this

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session. The conceptual issue of whether arbitration was the right mechanism for dispute settlement should be considered, among other things. Also, how would the independence of the JAB members be ensured since they would be appointed by the Secretary-General? he asked. Had the views of the International Civil Service Commission (ICSC) on the issue been considered? There was also the issue of costs, as the new scheme would be more expensive. The ACABQ had raised questions on the new costs for the proposed fees for the arbitrator; could the Organization afford these new costs when deferral, termination or curtailment of some programmes was being considered? The issue should be deferred and the comments of the Sixth Committee (Legal) should be sought. When cuts of budget and staff absorption of more expenses were being considered, it did not serve the purpose of the Committee to look at new mandates when there would be no funding for them.

VIRGINIA GRAHAM (United States), speaking on the issue of staff representational costs, said the indirect costs had ballooned to such a point as to warrant informal discussions on the matter. The threefold increase in those costs was unacceptable. The Secretariat should provide all costs related to staff representation, including travel to meetings. She asked if the staff defrayed the costs of any of the staff representational activities. In the United States staff had to pay for some costs for its representational activities. It should be no different in the United Nations.

Regarding the employment of retirees, she said the Committee had granted one year's exemption to allow the Secretariat to develop a programme that would restrict their employment. She saw no indication that that had been achieved. In 1982, the Committee had granted an exception which lasted for 12 years. Stressing that the Secretariat should make use of out-sourcing, she said "It is the way to go on this matter". She also stressed that the United States would not support a further extension of the exemption on the matter.

REGINA EMERSON (Portugal) said she agreed on the importance of a strong functioning staff union. Her Government supported the existence of such bodies. She welcomed the accurate data provided by the Secretariat and looked forward to participating in the informal discussions.

MARCIO FAGUNDES (Brazil) said he supported the statement made by the representative of India on the reform of the internal justice system.

FABIAN PALIZ (Ecuador) said that because of the complexity of the issue of reform, the matter should be deferred and submitted to the Sixth Committee for consideration.

Mr. ELZIMAITY (Egypt) expressed support for the views of India and Ecuador. The issue of reforming the internal justice system should be deferred.

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BERNARDO GREIVER (Uruguay) agreed that a system of justice should be discussed after taking account of the views of the Sixth Committee.

JULIE CAIRNS (United Kingdom) said she would welcome the chance to discuss the issue of staff representational activities further in informal consultations. The direct costs involved and other details could be considered. The reform of the justice system should be referred to the Sixth Committee.

WOLFGANG STOCKL (Germany) said the changed structure of the Office of Human Resources Management (OHRM) should be detailed. He would be interested in how an independent classification service was possible.

DULCE BUERGO ABASCAL (Cuba) said discussion of reform of the internal system should be postponed and the item considered by other bodies with more competence on the issue.

AMMAR AMARI (Tunisia) agreed that the matter should be referred to the Sixth Committee.

HIDEKI GODA (Japan) associated himself with the views of the United Kingdom on the costs of staff representational activities. He was ready to proceed to informal consultations on the matter. More information should be provided on the issue of capping the annual sums that retirees could be paid at $12,000. He was not sure that there was enough justification to extend the exceptions already granted in relation to the $12,000 limit.

Ms. EMERSON (Portugal) supported Germany's request. She did not believe the matter of internal justice reforms should be sent to the Sixth Committee, which dealt with legal issues between States. She regretted that the matter was being postponed again. If the Sixth Committee were to look at it, it should hold a brief resumed session for the purpose. Budgetary constraints should not stop Member States from examining proposals that would improve the management of the United Nations. There should be no budgetary cap that would hold reforms hostage.

Ms. GRAHAM (United States) urged the Chairman of the Fifth Committee to hold informal consultations on the matter in his office on Friday. She did not believe it should be sent to the Sixth Committee.

Mr. HANSON (Canada) said, on the matter of retirees, that the Committee had approved the derogation on the basis of an understanding that there would be no further derogation. He was reluctant to approve an extension. On internal justice reforms, he had no problem in principle with seeking the view of the Sixth Committee. But the Sixth Committee concerned itself with international treaty law and the internal justice system did not fall into

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that category. The views of the Legal Counsel could be sought as an alternative.

Mr. HALLIDAY said he would be happy to give the Committee the figures it sought. The reform of the justice system was a matter of great importance. Staff and their representatives felt the current system did not work and the advice of the Committee was needed. The OHRM restructuring had taken place in March after the Assembly resolutions calling for budget cuts. Several posts had been lost since the middle of 1995. That had led to some rationalization, which the restructuring was intended to accomplish. A D-1 and a P-5 had been encumbered and were taking part in planning human resources. They provided valuable information for the Committee and the Secretary-General. Some 7,000 to 8,000 staff had been trained and he was satisfied that certain capacities were in place. Classification was very important and standards approved by the ICSC were implemented by that unit. The restructuring was an attempt to adjust to changes.

Mr. DUVAL, Director of the Translation and Editorial Division, said he had taken note of the statements of the representatives of the United States, Japan and Canada. Responding to the United States representative, he reassured her that Conference Services had tried to reduce its reliance on temporary assistance, including that of retirees. An aggressive policy had been pursued for translation services. Contractual services now accounted for 17 per cent of the output of translation services. The roster of freelance translators had also been increased.

However, availability on the local market was limited in all duty stations, he continued. There were some difficulties in recruiting translators, revisers and interpreters who meet the Organization's exacting standards. Referring to a recent examination for French translators, he said that of 3,500 applicants only 15 met the requirements. In the circumstances, it was difficult to achieve dramatic results. He reiterated that the $12,000 limit was on an interim basis pending consideration of a policy on the use of retirees. The Secretary-General had merely requested that the derogation also be extended on an interim basis until such time as a general policy was established.

ERICH VILCHEZ ASHER (Nicaragua), Committee Chairman, said the Committee was not in a position to decide on the reports on the human resources issues before it. The issues would therefore be submitted to informal discussions.

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